Question 1

Which of the following is a provision of the Patient Protection and Affordable Care Act?

Accepted Answer

A) Insurance companies may not legally deny coverage to anyone on the basis of a preexisting medical condition. 
B) Every firm must purchase health insurance for their employees or face a $2,000 fine per employee. 
C) Every individual must purchase their own health insurance for themselves and their dependents or pay a fine. 
D) Adult children of parents with employer-provided health insurance can remain covered by their parents' insurance through age 35. 
A) Insurance companies may not legally deny coverage to anyone on the basis of a preexisting medical condition. 
B) Every firm must purchase health insurance for their employees or face a $2,000 fine per employee. 
C) Every individual must purchase their own health insurance for themselves and their dependents or pay a fine. 
D) Adult children of parents with employer-provided health insurance can remain covered by their parents' insurance through age 35.

Question 2

The prominence of employer-provided health insurance in the U.S.is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Accepted Answer

A) True 
 B)False

Question 3

Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is

Accepted Answer

A) less than the marginal benefit. 
B) greater than the marginal benefit. 
C) equal to the marginal benefit. 
D) zero. 
A) less than the marginal benefit. 
B) greater than the marginal benefit. 
C) equal to the marginal benefit. 
D) zero.

Question 4

A moral hazard problem arises in the health care market because health insurance encourages people to overconsume health care.

Accepted Answer

A) True 
 B)False

Question 5

In the past several decades, U.S.health care expenditures have

Accepted Answer

A) risen absolutely but declined as a percentage of GDP. 
B) declined absolutely but risen as a percentage of GDP. 
C) risen absolutely and as a percentage of GDP. 
D) declined absolutely and as a percentage of GDP. 
A) risen absolutely but declined as a percentage of GDP. 
B) declined absolutely but risen as a percentage of GDP. 
C) risen absolutely and as a percentage of GDP. 
D) declined absolutely and as a percentage of GDP.

Question 6

According to most experts, which of the following factors is most important in causing health care costs to rise?

Accepted Answer

A) the aging of the population 
B) rising incomes 
C) malpractice suits 
D) fee-for-service health insurance and cost-increasing technology 
A) the aging of the population 
B) rising incomes 
C) malpractice suits 
D) fee-for-service health insurance and cost-increasing technology

Question 7

One of the peculiarities of the U.S.market for health care is

Accepted Answer

A) third-party payments by insurance companies. 
B) government-provided health insurance. 
C) government tax credits and vouchers for consumers to pay for health care. 
D) fee-for-service payments for all physician visits. 
A) third-party payments by insurance companies. 
B) government-provided health insurance. 
C) government tax credits and vouchers for consumers to pay for health care. 
D) fee-for-service payments for all physician visits.

Question 8

As a percentage of GDP, health care spending in the United States has

Accepted Answer

A) decreased substantially since 1960. 
B) increased slightly since 1960. 
C) increased substantially since 1960. 
D) remained relatively constant since 1960. 
A) decreased substantially since 1960. 
B) increased slightly since 1960. 
C) increased substantially since 1960. 
D) remained relatively constant since 1960.

Question 9

The moral hazard problem created when consumers acquire health insurance leads them to

Accepted Answer

A) take more care of their health. 
B) consume more health care services. 
C) seek less care from their physicians. 
D) exercise more and eat healthier food. 
A) take more care of their health. 
B) consume more health care services. 
C) seek less care from their physicians. 
D) exercise more and eat healthier food.

Question 10

In the United States, approximately how many doctors are there per 100,000 population?

Accepted Answer

A) 162 
B) 245 
C) 580 
D) 5,600 
A) 162 
B) 245 
C) 580 
D) 5,600

Question 11

Out-of-pocket costs of health care to consumers are mostly in the form of

Accepted Answer

A) premiums and copayments. 
B) health taxes and premiums. 
C) premiums and deductibles. 
D) copayments and deductibles. 
A) premiums and copayments. 
B) health taxes and premiums. 
C) premiums and deductibles. 
D) copayments and deductibles.

Question 12

The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand."

Accepted Answer

A) True 
 B)False

Question 13

Health care spending in the next 10 years is projected to grow at an annual rate of about

Accepted Answer

A) 2 percent. 
B) 6 percent. 
C) 14 percent. 
D) 20 percent. 
A) 2 percent. 
B) 6 percent. 
C) 14 percent. 
D) 20 percent.

Question 14

In 2015, some 30 million Americans did not have health insurance.

Accepted Answer

A) True 
 B)False

Question 15

The twin problems of health care in the U.S.are the rapidly rising cost of health care and limited access to health insurance coverage.

Accepted Answer

A) True 
 B)False

Question 16

In industrially advanced countries, the price elasticity of demand for health care is about

Accepted Answer

A) 2.0. 
B) 0.2. 
C) 4.5. 
D) 1.0. 
A) 2.0. 
B) 0.2. 
C) 4.5. 
D) 1.0.

Question 17

Which of the following factors has contributed to rising health care prices in the United States?

Accepted Answer

A) The supply of physicians per 100,000 people has decreased since 1975. 
B) Productivity growth in the health care industry has been negative in recent years. 
C) Improvements in medical technology have significantly increased the number of patients that can be treated each year. 
D) The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services. 
A) The supply of physicians per 100,000 people has decreased since 1975. 
B) Productivity growth in the health care industry has been negative in recent years. 
C) Improvements in medical technology have significantly increased the number of patients that can be treated each year. 
D) The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services.

Question 18

The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

Accepted Answer

A) hospitals now receive a fixed payment for treating each patient. 
B) the average length of a hospital stay has increased. 
C) more patients are treated on an outpatient basis. 
D) hospitals now have an incentive to restrict the amount of resources used for patients. 
A) hospitals now receive a fixed payment for treating each patient. 
B) the average length of a hospital stay has increased. 
C) more patients are treated on an outpatient basis. 
D) hospitals now have an incentive to restrict the amount of resources used for patients.

Question 19

When economists say that health care services are overconsumed, they mean that

Accepted Answer

A) rich people buy too much health care and poor people buy too little. 
B) some resources now used in the health care industry could produce alternative goods and services that society values more highly. 
C) health care is being purchased in amounts such that marginal benefits exceed marginal costs. 
D) the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied. 
A) rich people buy too much health care and poor people buy too little. 
B) some resources now used in the health care industry could produce alternative goods and services that society values more highly. 
C) health care is being purchased in amounts such that marginal benefits exceed marginal costs. 
D) the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.

Question 20

Access to health care is a highly publicized problem in the U.S.The number of Americans in 2015 who did not have health insurance coverage was approximately

Accepted Answer

A) 12 million. 
B) 30 million. 
C) 85 million. 
D) 121 million. 
A) 12 million. 
B) 30 million. 
C) 85 million. 
D) 121 million.

Exam 24: Health Care

Which of the following is a provision of the Patient Protection and Affordable Care Act?

The prominence of employer-provided health insurance in the U.S.is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is

A moral hazard problem arises in the health care market because health insurance encourages people to overconsume health care.

In the past several decades, U.S.health care expenditures have

According to most experts, which of the following factors is most important in causing health care costs to rise?

One of the peculiarities of the U.S.market for health care is

As a percentage of GDP, health care spending in the United States has

The moral hazard problem created when consumers acquire health insurance leads them to

In the United States, approximately how many doctors are there per 100,000 population?

Out-of-pocket costs of health care to consumers are mostly in the form of

The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand."

Health care spending in the next 10 years is projected to grow at an annual rate of about

In 2015, some 30 million Americans did not have health insurance.

The twin problems of health care in the U.S.are the rapidly rising cost of health care and limited access to health insurance coverage.

In industrially advanced countries, the price elasticity of demand for health care is about

Which of the following factors has contributed to rising health care prices in the United States?

The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

When economists say that health care services are overconsumed, they mean that

Access to health care is a highly publicized problem in the U.S.The number of Americans in 2015 who did not have health insurance coverage was approximately

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

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Pure Competition in the Short Run

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